Foreclosure Activity Ticks Upward

(Courtesy ATTOM)

ATTOM, Irvine, Calif., found a total of 185,580 U.S. properties with foreclosure filings–default notices, scheduled auctions or bank repossessions–between January and June, up 13% from a year ago.

The firm’s Midyear 2023 U.S. Foreclosure Market Report said foreclosure filings are up 185 percent from the same time period two years ago.

“Similar to the first half of 2022, foreclosure activity across the United States maintained its upward trajectory, gradually approaching pre-pandemic levels in the first half of 2023,” said ATTOM CEO Rob Barber. “Although overall foreclosure activity remains below historical norms, the notable surge in foreclosure starts indicates that we may continue to see a rise in foreclosure activity in the coming years.”

States with the greatest increase in foreclosure activity compared to a year ago included Maryland (up 100 percent), Oregon (up 99 percent), Alaska (up 95 percent), West Virginia (up 83 percent), and Arkansas (up 72 percent).

Illinois, New Jersey, and Maryland posted highest state foreclosure rates, the report said.

Just over 135,000 U.S. properties started the foreclosure process in the first six months of 2023, up 15 percent from the first half of last year and up 36 percent from the first half of 2020, ATTOM reported. States that saw the greatest number of foreclosures starts included California (14,217 foreclosure starts), Florida (13,837 foreclosure starts), Texas (13,419 foreclosure starts), New York (8,772 foreclosure starts), and Illinois (7,995 foreclosure starts).

Lenders foreclosed (REO) on 22,672 U.S. properties in the first six months of 2023, up 9 percent from the first half of 2022 and up 133 percent from the first half of 2021, but down 40 percent from the first half of 2020. States with the most REOs included Michigan (2,423 REOs); Illinois (2,059 REOs); Pennsylvania (1,420 REOs); California (1,362 REOs); and New York (1,350 REOs). 

ATTOM noted the average time to foreclose has reached a record high. Properties foreclosed in Q2 2023 had been in the foreclosure process an average of 1,212 days, the highest number of average days to foreclose since Q1 2018. That figure was up 28 percent from the previous quarter and up 28 percent from Q2 2022.